I couldn't transfer my existing phone number (not available in my area yet), so does that mean that the people in my calling area will be charged long distance to call me? Would they have to dial 10 numbers or just 7.

Yes, it would be long distance for people in Telkwa's calling area to call you. They would have to dial 11 digits (1-250-483-xxxx). Your number is from Victoria so when people from Telkwa or Smithers call you, they are making a long distance call to Victoria and will be billed accordingly. A workaround for this would be to have your friends text or IM you when they want to talk and then you could call them. Another workaround would be for people to call you using YAK which will cost them five cents and then you would call them back. YAK is a dial-a-round service. Just have your friends dial 10-10-925 then 1-250-483-xxxx (your Vonage number) in a continuous sequence.